The Learning Organization as an Undelivered Promise

Introduction to Learning Organizations

A learning organization is one that acquires knowledge and uses it innovatively to thrive and survive in a rapidly changing business environment (Senge 2006). Learning organizations think critically and take risks with new ideas; they create an organizational culture that encourages employees' skill development and knowledge acquisition. Moreover, such firms value employees' contributions and incorporate new information and knowledge into the company's operations. Learning organizations develop in response to competitive business environments (Senge 2006), and they must be creative and relevant in order to sustain long-term profitability.

The development of learning organizations is not achieved through internal organic growth alone. Research indicates that a number of factors prompt this development. As most organizations grow, learning becomes increasingly difficult because individual thinking and organizational structures tend to become rigid. Problem-solving in this context becomes harder, since only short-term solutions tend to emerge (Senge 2006), meaning that problems are likely to re-emerge in the future.

Most organizations restructure and retain fewer employees in order to improve efficiency and profitability. Management and employees face the challenge of learning faster than competitors and developing a customer-centered culture to create a competitive advantage. Organizations also need to be knowledgeable about new processes and products, their operating environment, and how to provide innovative solutions using skills and knowledge available from within. Achieving this requires cooperation among employees, a free flow of reliable information, and the development of organizational trust.

Factors Driving the Development of Learning Organizations

Peter Senge (2006), a leading researcher on the concept of the learning organization, identifies five main characteristics: systems thinking, mental models, team learning, personal mastery, and shared vision. Systems thinking is a conceptual framework that allows individuals to study organizations as bounded systems. It holds that an organization must exhibit all five characteristics to qualify as a learning organization (Senge 2006), meaning that the absence of any single characteristic will prevent the organization from achieving its goals.

Personal mastery refers to an individual's commitment to a continuous learning process. Organizations with employees who are rapid learners gain a competitive advantage over those with a less committed workforce. Personal learning can be fostered through staff development and training; however, individual aptitude is critical, since learning cannot be forced. Research suggests that most workplace learning is incidental rather than the result of formal training programs. This implies that organizations must work to make personal mastery a routine cultural norm rather than a periodic exercise.

Senge's Five Disciplines of a Learning Organization

Mental models are the assumptions held by both organizations and individuals. Organizations tend to connect their actions to theoretical frameworks and use these to predict outcomes. Companies also uphold certain values, norms, and behaviors that differentiate them from competitors. In developing a learning organization, management has a responsibility to replace authoritative attitudes with a spirit of cooperation that promotes trust and open inquiry. To achieve this, companies must establish mechanisms that locate and evaluate their current courses of action.

A shared vision is a valuable tool for motivating employees to learn, because it provides a source of identity and a focus for development. A strong vision should be built around the individual visions of employees at all levels of the organization. Management should replace the traditional approach of imposing a corporate vision on employees with a collaborative process of creating a genuinely shared vision. Finally, a learning organization should be characterized by team learning. Shared learning within teams is essential because it improves an organization's overall capacity for problem-solving (Koontz & Weihrich 2007).

Many barriers prevent most organizations from becoming genuine learning organizations. For instance, the size of an organization can hinder internal knowledge sharing (Marquardt 2011), because the process becomes more complex, trust is lower, employee relationships are weaker, and communications are less effective. This means that achieving a learning organization model — for example, within the procurement department of a large firm — may not be straightforward. Another barrier is resistance from certain stakeholders, such as directors who have undisclosed interests in the organization. This group often prefers a bureaucratic form of leadership with centralized power (Koontz & Weihrich 2007). Some such individuals believe that employees should pursue organizational goals without necessarily accommodating the interests of other stakeholders, which limits the implementation of a shared vision.

It is also difficult for an organization to embrace personal mastery, since it can be perceived as a threat to organizational control (Marquardt 2011). Training individuals may equip them with skills they use to advance personal rather than organizational goals. Furthermore, the absence of a learning culture within an organization is itself a barrier. Organizational culture must be one in which shared learning is embraced and employees at all levels are empowered to contribute knowledge.